nancy Posted April 8, 2010 Posted April 8, 2010 Does the 1st 6% of compensation contributed to a 401(k) plan reduce the earned income of a sole proprietor for deductibility purposes?
J Simmons Posted April 8, 2010 Posted April 8, 2010 Does the 1st 6% of compensation contributed to a 401(k) plan reduce the earned income of a sole proprietor for deductibility purposes? Is that 6% contributed as 401k elective deferrals? (if so, then no it does not reduce compensation for deductibility purposes), or as a 'company' contribution? (if so, then yes it does reduce compensation for deductibility purposes). John Simmons johnsimmonslaw@gmail.com Note to Readers: For you, I'm a stranger posting on a bulletin board. Posts here should not be given the same weight as personalized advice from a professional who knows or can learn all the facts of your situation.
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